By Roger Baird on Tuesday 29 January 2019
The digital-only bank said the new deal would handle its conduct issues as it adds over over 250 businesses and 9,000 customers per day.
Digital-only bank Revolut said it has signed a deal with compliance firm ClauseMatch to manage its internal controls.
The move comes amid long-running concerns over compliance from regulators around the world since the financial crisis that has seen high street banks such as HSBC and RBS in the UK fined billions for conduct failures.
Also, last week UK customs and tax body HMRC warned that eMoney held in eWallets by fintech firms should be held in ISA deposits with specific controls, and oversight and must be subject to the review of an external auditor.
It added that cash held in ISA’s by a number of fintech firms do not “meet these requirements. ISA managers must ensure that cash subscriptions and other investor funds are held in accordance with the ISA regulations.”
Fast-growing Revolut, which has amassed 3.7 million users across 28 European markets since it was launched in 2015, said it would work with ClauseMatch, “as we grow and expand globally”.
Revolut founder and chief executive Nikolay Storonsky (pictured, left) said: “Compliance is something that a company cannot get wrong. While many traditional banks are still largely addressing compliance in a manual way, employing thousands of people, FinTechs are making their way forward, quickly adopting new technologies to automate risk and compliance because they have nimble operations and no legacy.”
He added that “regulatory technologies such as ClauseMatch” would help the bank manage its compliance procedures. By contrast, HSBC has over 3,000 staff across its worldwide compliance department.
The bank said it is currently signing up over 250 businesses and 9000 customers per day.
It added it is preparing to launch in the US, Canada, Australia, New Zealand, Singapore and Japan “in the coming months”.
Last February, Revolut announced it had became the first UK banking app to financially break even.
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